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Solar Co. Inc. Case Solution & Answer

Solar Co. Inc. Case Study Solution

The report illustrates the conflict raised between the SolarCo. and Xyz Marketing Agency due to a breach occurred in the systems of XYZ. This brought about immense negativity on the brand image of Solar Co. in the market due to wrongful posits from the solar social space and also the loss of credentials. It made Solar Co. to end its contract with XYZ Agency and recall the $200,000 which it had paid in advance for the campaign. However, XYZ Agency has called out a public apology along with the request to continue the relationship, which the Solar Co. does not want to pursue.

In such situation, two sets of recommendations are proposed to resolve the matter, including the settlement option and the Memo covering the arbitrage procedure. The benefits of Memo may help both the players to resolve the matter in an effective way, without incurring additional cost and impact on the brand image of the company.

Part: 1- recommendation to Solar CO

Under the given case, I will look out to settle the matter out of court, since going to the court not only prolongs the process but also affects the reputation of the company, which in the given situation, the Solar Co.cannot afford, due to the already developed negativity in the market.

1-      Preoccupation of management

The option of settlement will allow both parties(Solar and XYZ) to have adequate conditions incorporated in the deal, leading to better fulfillment and control of the parties over the situation.

2-      Lost time of key personnel

The length of time is also less in settling the matter through settlement option since both parties agree on a mutual ground, making the decision process efficient and thus allowing Solar Co. to revive the marketing campaign again in the market.

3-      Costs of the litigation and attorney’s fees

Under the given option, the expenses associated with hiring the lawyer and the attorney are minimized as the company deals with the owner directly, mitigating the need to include additional intermediaries and thus reducing the expenses.In the case with Solar Co and XYZ, settling the matter outside will make them control the expense, making them invest this cost in other operations.

4-      Disruption of schedules and budgeting

Under the given situation, the Solar Co will have flexibility to trim and twist the conditions of the settlement according to its benefit. It is due to the fact that in the given situation, the company is at advantage of pressuring the Xyz Agency. Due to the breach, it has the opportunity to deal with the situation flexibly, such as the starting time of the settlement and the deadlines to meet the settlement criteria.In addition, it will allow both parties to decide the point offering and also the services rendered for future, according to the new plan.

5-      The chances of defeat

Under the given option, the matter will remain confidential and the chances to defeat will be reduced. It is due to the fact that under the settlement option, both parties may meet and settle the matter in private,making them go for the informed decision making. This will allow the company and the XYZ to propose a better plan with full under standing rather than going for the trial, in which the situation maybe altered due to the understanding of the Jury.

6-      Effect on market as a whole

The outside settlement will allow both the parties to manage the issue easily without any public appearance and also make the parties to reach to the final solution with ease, without any high resistance. This will allow Solar Co to maintain its reputation, which if compromised, may deteriorate its brand image in the market.

7-      Ability to collect a judgment

Under the settlement option, the procedures to carry the matter forward are easy. For instance, to receive the money paid in advance, the company may not need to involve the eternal players such as personnel from the court.In addition, it will allow both the players to communicate openly face to face, and not through the external body that in majority of the cases, leads to increased conflicts.

8-      Consideration of timing and possible alterations in the situation

The settlement option will allow the company to reach to the final decision without any delays. It will make the company develop the terms and conditions and work upon them immediately after the settlement of the parties on the common ground.This will reduce the delays and will not prolong the procedure……….

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